[ET Net News Agency, 26 March 2020] Nomura lowered its target price for China Life
Insurance (02628) to HK$20.24 from HK$23.31 to reflect increased risk premium due to
uncertainties led by COVID-19 and maintained its "buy" rating.
The research house said China Life reported a set of strong FY2019 results. It was a
fruitful year of strong business expansion, with NBV (new business value) up 18.6%, much
faster than peers.
Looking ahead, Nomura expects China Life to grow its NBV by 8% for FY2020 and to keep
outperforming most of its peers, thanks to the very strong open year pre-sales growth
conducted last year before the outbreak of COVID-19.
However, the low-interest-rate environment could be the key challenge going forward,
since PBOC may have to introduce a raft of easing measures to support firms and households
severely hit by COVID-19. (KL)